THEORETICAL ASPECTS OF DETERMINING THE INFLUENCE OF THE CREDIT SERVICES MARKET ON THE STABILITY OF THE BANKING SYSTEM

Abstract

The credit services market is an integral part of the sphere of financial services. This market is an extremely important element of the financial system of any country, as it allows those economic entities that need them for their own development to receive financial resources. The influence of this market on the economic development of the country is also objectively complex and significant. Providing financial resources to business entities for temporary use, financial institutions stimulate the development of both the country's financial system and its national economy. In this part, lending processes of small and medium-sized enterprises, which are unable to raise funds on international financial markets and participate in securities transactions, are of particular importance.

The article examines the theoretical foundations of determining the impact of the credit services market on the stability of the banking system, which made it possible to ascertain its uneven development, constant and sometimes rapid changes in the macroeconomic environment in which credit institutions operate. At the same time, the efficiency of credit institutions is constantly increasing. Based on this, a model of interaction between the market of credit services and the banking system is presented. It has been proven that war and cyclical macroeconomic instability will negatively affect the recovery of the credit services market in the country, which will be caused by a difficult economic situation and the destruction of a significant territory of the country.

In such conditions, the market of credit services usually stopped its activity. A significant number of banking institutions and their management were forced to focus not on the development of their own business, but on ensuring the safety of their employees, removing assets and cash from the divisions to safe places if possible. In a significant number of credit institutions, service branches have already been completely destroyed, some of them are temporarily unsuitable for carrying out credit activities. The high level of development of online services of banking and other financial institutions in Ukraine did not allow creating an information vacuum for clients about their services and the peculiarities of the work of these institutions during the war. It was determined that today financial institutions are trying to return to their own activities in those regions where active hostilities are no longer taking place. This is mainly the north of Ukraine. Credit institutions are gradually resuming their work. However, credit recovery takes time. Credit institutions focus attention on the restructuring of customer debts and the gradual organization of their own work.